ECB's Coeure speaking to Reuters 18 May

  • ECB cash facility working well, has flexibility
  • elections should not weigh much in decisions
  • inflation rise not yet durable, self-sustaining
  • no shortage of German bonds
  • rate hike possible, in abstract ( theory), if neg depo rate hurts lending
  • ECB shouldn't wait too long before taking away support
  • sequence of future policy steps in guidance "not set in stone"
  • credibility of fwd guidance depends on its adjustment to facts

Rate hike talk theoretical again. No great shocks in any of the above.

He adds:

  • ECB to discuss including Greece in QE only after Eurogroup debt measures, IMF board meeting, closure of review
  • IMF presence in Greek programme not a necessity for ECB but would provide comfort

Meanwhile EURUSD still slipping at 1.1125 amid general USD demand

ECB's Coeure - Nothing set in stone